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Categories: General Tax Terms

Sales Tax is a consumption tax imposed by the government on the sale of goods and services. It is calculated as a percentage of the purchase price and is typically collected by the retailer at the point of sale, then remitted to the government.

Sales tax rates vary by jurisdiction and can differ between states, counties, and municipalities. Some items may be exempt from sales tax, such as certain food products or prescription medications, depending on local regulations. For example, if a product costs $100 and the applicable sales tax rate is 7%, the total cost to the consumer would be $107.

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